Fashion giant Asos makes £300m loss and warns of more sales pain

ASOS has slumped to a near £300 million loss and today warned that sales could tumble by as much as 15% this financial year as the online fashion giant progresses with a turnaround plan that includes shifting mountains of older stock.

-  Joanna Hodgson

In annual results that sent shares in the London-headquartered company down more than 11%, or 44.25p to 351.15p, Asos — which is popular with shoppers in their twenties — also pointed to challenges that had dented sales in the year to September 3.

Like many digital rivals it saw booming demand during the pandemic when stores were closed. But this year trading was hit by “high inflation and weak sentiment” in the UK, particularly from younger customers, and soggy weather hurting summer clothing sales.

Total revenue was £3.5 billion, down from £3.9 billion, and sales in the UK dropped 13%. Pre-tax losses widened to £296.7 million from a £31.9 million loss.